Start your Business in Gurgaon | Choose Your Business Structure Wisely
Starting a new company and launching a business in a place like Gurgaon can be a challenging task. Once business model is finalized, next step is to set up the business and incorporate the company in Gurgaon as it offers many advantages. Hundreds of Fortune 500 companies have set up offices in Gurgaon and Internet (smartphone, tablets & mobiles) penetration is one of the highest in India.
Originally published here.
The urban population of Gurgaon has played a major role in creating the booming startup ecosystem along with digital lifestyle. On-demand services are highly preferred and residents of Gurgaon are really forthcoming in using products and services offered by startups.
Incubators in Gurgaon
After global success of businesses like Uber, Amazon and AirBnb, India has its own share of success stories including Ola Cabs, Flipkart, SnapDeal, Oyo Rooms, Grofers, Zomato, and the like. Many of successful Indian companies are either headquartered in Gurgaon, or their major revenues come from consumers in Gurgaon. This has resulted in a vibrant startup ecosystem in Gurgaon that includes numerous incubators and accelerators. Some of these include 91 Springboard and InvestoPad. Such incubators / accelerators also provide co-working spaces along with access to a strong network of Investors, Mentors, Service providers etc.
Incorporating Company in Gurgaon or Delhi
Having corporate base in Delhi NCR provides significant advantages and process to incorporate the company is straightforward. Startups can select appropriate corporate structure based on their business model. For example, tech startups can opt for private limited company (governed by the Companies Act) that requires minimum two directors (co-founders or promoters). This structure is highly preferred by digital startups (B2C and B2B) as its easy to accommodate investors, issue shares (preference shares and equity shares), allocate employee stock options and increase paid up capital to raise subsequent round of funding. In case of only one cofounder, OPC (one person company) can also be considered as corporate structure, which is introduced by latest company law. However, there are restrictions to issue shares to investors and hence as business grows, the OPC can be converted into a private limited company.
Similarly, service businesses can opt for Limited Liability Partnership (LLP) as corporate structure. The LLP includes partners instead of directors as in case of private limited company. Professional service providers like consultants, accountants, lawyers, architects etc. usually opt for LLP.
Office Space in Gurgaon
According to a recent study by US-based realty consultant Colliers International, Gurgaon has beaten Mumbai and Bengaluru to see the highest absorption of office space in Q3 2015, which explicitly implies that Gurgaon is the country’s fastest growing corporate business hub. Latest business hotspots in Gurgaon are located on Golf Course Road (One Horizon Center and Two Horizon Center) and Sohna Road. While manufacturing companies prefer Manesar, NH8 remains the most preferred location to set up offices in Gurgaon. Places like Udyog Vihar and DLF CyberCity are among the best office spaces in Gurgaon, primarily owing to their proximity to NH8.